PTC buying Kepware to extend IoT offerings

Jan. 7, 2016
PTC announced it will acquire Kepware Technologies for approximately $100 million

PTC announced Dec. 23 that it will acquire Kepware Technologies for approximately $100 million, plus up to an additional $18 million based on achievement of certain initiatives and financial results. Over the past 12 months, privately held Kepware generated about $20 million in revenue. PTC plans to draw on credit to finance its transaction, and expects it to be neutral to fiscal-year-2016, non-GAAP earnings per share.

The transaction is expected to close in early 2016, subject to closing conditions, including regulatory approval. PTC intends to maintain the Kepware partner ecosystem, and continue developing Kepware technology. The acquisition will enhance PTC's portfolio of Internet of Things (IoT) technology, and accelerate its entry into the factory setting and IIoT.

Founded in 1995, Kepware is a software development company that provides communications connectivity to industrial automation environments. It serves customers in more than 120 countries in manufacturing, oil and gas, building automation, and power and utilities. Its KEPServerEX software connects devices and control systems, giving users one source of industrial data.

KEPServerEX will become part of PTC's ThingWorx IoT technology platform. Once the firms' products are integrated, machine data will be aggregated into ThingWorx, integrated with internal and external information, and automatically analyzed using ThingWorx's machine-learning functions. Their  integration will provide enterprise-wide insight.

Earlier in the month, Kepware announced the launch of its IoT Alliance program. The alliance is composed of a strategic network of IoT providers committed to growing the global IoT market. Alliance members will have access to proprietary technology from Kepware that enables their solutions to access industrial data from KEPServerEX. The 10 founding members participating in Kepware's IoT Alliance include Aizoon, Altizon, DeviceLynk, Falkonry, Informatica, IOT Technology Solutions, mnubo, Perseus, Splunk and PTC's ThingWorx.